Construction Law/Claim for delays in material supply
We represent the Contractor and we have a disputed claim for delay in material supply from contractor side, Subcontractor submitted only some documents as evidence in which material delivery notes documented as support for its claim to accept the material delays from Contractor side.
I rejected the claim based on unsubstantiated proof since the claim is not supported on any base line programe of planning package such as Primavera -P3, etc. to show any delays on Project due to the material delays and also since some of the contractual clauses also I referred for rejecting the claim supporting to Contractor.
My question is that Can Contractor could refer two bases for rejecting the claim.
Second if suppose Subcontractor provided the sufficient substantiation for its claim even though the Contractual clauses will be based for rejecting the claim since the Subcontractor is threatening to approach to arbitration in case if we not accepting its claim.
And the last shall Contractor has to guide the Subcontractor to produce the right documents since he has asked frequently to guide what document is required to substantiate its claim, as we rejected its claim based on unsubstantiated proof of documents from Subcontractor side.
Please advise me.
Thanks and regards
It seems from the outset that it was the late contractor's material supply that caused a delay in the sub-contractors work.
This indicates that the sub-contractor has a very sound basis to prove his claim and that the contractor has caused an "act of prevention".
This puts the contractor in a very weak position.
The basic legal principle is that "he who alleges must prove".
Secondly it is not for you to write your sub-contractor's claim.
Regarding using more than one layer of defence that is not a problem - in fact it is good practice.
It is not necessarily a requirement to use planning software to demonstrate any entitlement to an extension of time.
A common sense review will often work - particularly in an arbitration.
I am assuming that this is not a delay event that can be passed on to the Employer so you have to settle it at a domestic level.
So my advice at this stage is to inform your sub-contractor that he has not proven his case for an EoT and at the same time point out the contract clauses that prevent such a claim.
If the sub-contractor insists on taking his case to arbitration then it may be better to make an agreed settlement on purely commercial basis.
Finally please be aware that:
An act of prevention will sometimes over ride contract clauses.
Failure to award an EoT when it is due will cause time to be at large.